CSR REPORT 2019

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Group turnover totals €2.1 billion, the headcount of 5,000 employees has a presence in more than 50 countries, with about 30% of them working in France, and the group has been profitable since it was created. We operate on three major markets: broadband, Smart Cities and the Internet of Things. Sagemcom designs, manufactures and ships more than 40 million terminals worldwide every year.

The employees hold a 30% stake in the Group, which is headed by a stable management team whose members have been present in the Group for more than 20 years and have been

managing Sagemcom since it left the Sagemcom group in 2008.In 2019, Sagemcom initiated a fourth LBO, keeping Charterhouse as the Group’s majority stakeholder, the remaining 30% being held by the employees (including 60% of French employees).

Sagemcom’s head office is in Rueil-Malmaison, to the west of Paris, and is the group’s nerve centre and home to its R&D operations, manned by more than 500 dedicated employees.

Sagemcom is also present in Tunisia, where it operates a manufacturing site dedicated to the production of set-top

boxes, Internet boxes and smart meters in Ben Arous (2,000 employees), and a 600-strong R&D centre in Mégrine (600 employees).

Sagemcom pays close attention to the economic, societal and environmental issues related to its activities on a daily basis, and for many years has been implementing concrete action plans to take these issues into account. Quality, ethics, safety and protection of the environment are at the heart of our fundamental values.

The Sagemcom group

Sagemcom is a French group and European leader on the high added-value smart terminals market (set-top boxes, Internet boxes, multi-energy smart meters, etc.), meeting the essential needs of the world that surrounds us.

2.1billion Euros of turnover

5,000employees in

more than 50 countries

30% held by employees

More than 75million invested in R&D

More than 40million terminals are designed, manufactured and delivered each year across the entire

world by Sagemcom

2019 CSR Report - 3

Our values

To remain a world leader in very dynamic markets is essential for Sagemcom. We achieve this by remaining faithful to our brand image: to be the first to offer our customers personalised products featuring the latest technological breakthroughs.

We protect our competitive edge by calling on our know-how to respond to the expectations and needs of our customers, thanks to a common culture of innovation, technological breakthroughs, high added value and time-to-market.

Dialogue all along our value chain

Sagemcom meets the demands of its markets by establishing permanent dialogue with the stakeholders who form its ecosystem: customers, suppliers and subcontractors, employees, the unions, NGOs and charities. The Group is engaged in permanent dialogue with all of these stakeholders, all along its value chain.

Employee share ownership: a central feature of our DNA

Employee share ownership is a core value of the Sagemcom Group. Since its creation in 2008, the Group's capital has always been based on an employee ownership scheme of around 30%. Further to its fourth LBO, more than 70% of its French employees are now Sagemcom shareholders.

OUR VALUES

“There is an idea at the origin of every project. Ingenious, insightful, brilliant, but also sometimes offbeat, incongruous or bizarre. Then, the idea is tested, enriched, completed, modified, formalised and converted into technical know-how, until it reaches the very essence of its existence, by being materialised in a product. At Sagemcom, our ideas are born out of the creativity of our employees. Thanks to the agility and the power of our teams, these ideas become products, created to achieve high performances and stay one step ahead of our customers’ needs.

As the leaders on the high added-value smart terminals market, Sagemcom’s employees constantly reinvent themselves and push the limits of inventiveness to find today's ideas that will become the products of tomorrow.

To face the future with our customers.

To make the greatest innovations possible.

To invent the connected home of tomorrow.”

Sagemcom - Ideas & More

Teampower

Clientcentric Agility

Efficiency

Creativity

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CONTROL OF PRODUCTS AND SERVICES INFORMATION SECURITY

DEVELOP OUR SKILLS CORPORATE SOCIAL RESPONSIBILITY

SUPPORT SAGEMCOM’S PROFITABLE GROWTH

Match the skills of teams to our current and future needsContinue to professionalize the integration process for new employees Promote multicultural operationsExtend the principles of international mobility and career developmentStrengthen talent managementManage and capitalise on knowledge

Strengthen the projects’ control notably by the risk analysis Take greater account of customers’ requirements by all functions Secure the suppliers’ quality in a dynamic contextContinue DFM (design for manufacturing) actions Strengthen the traceability of hazardous substances

Monitor and secure the cloud services needs of our products and systemsStrengthen the safety of our products and solutions Continue to secure our infrastructures and our sensitive dataDeploy the GDPR both in our organization and in our solutions

Safeguard the health and safety of our employeesContinue the deployment of our ethical and deontological practicesExtend ethical monitoring and support our partners and suppliersPromote our ecodesign approach with our customers

Continue to grow our international incomeConquer new customers and secure our existing portfolio Boost products and related services innovation

Develop services offerings (financing, after-sales, logistics, industrial…)Strengthen the industrial strategy : our factories, ODM/EMS and eco-system suppliers

Anticipate the needs and meet the expectations of our customersCapitalize the experience on the resolution of customer complaints

Intensify "Fast Quality Loops" with our customers and after-sales service partnersEnsuring Sagemcom's compliance with regulatory and societal requirements

CUSTOMER SATISFACTION

2019 Policy

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CONTROL OF PRODUCTS AND SERVICES INFORMATION SECURITY

DEVELOP OUR SKILLS CORPORATE SOCIAL RESPONSIBILITY

SUPPORT SAGEMCOM’S PROFITABLE GROWTH

Match the skills of teams to our current and future needsContinue to professionalize the integration process for new employees Promote multicultural operationsExtend the principles of international mobility and career developmentStrengthen talent managementManage and capitalise on knowledge

Strengthen the projects’ control notably by the risk analysis Take greater account of customers’ requirements by all functions Secure the suppliers’ quality in a dynamic contextContinue DFM (design for manufacturing) actions Strengthen the traceability of hazardous substances

Monitor and secure the cloud services needs of our products and systemsStrengthen the safety of our products and solutions Continue to secure our infrastructures and our sensitive dataDeploy the GDPR both in our organization and in our solutions

Safeguard the health and safety of our employeesContinue the deployment of our ethical and deontological practicesExtend ethical monitoring and support our partners and suppliersPromote our ecodesign approach with our customers

Continue to grow our international incomeConquer new customers and secure our existing portfolio Boost products and related services innovation

Develop services offerings (financing, after-sales, logistics, industrial…)Strengthen the industrial strategy : our factories, ODM/EMS and eco-system suppliers

Anticipate the needs and meet the expectations of our customersCapitalize the experience on the resolution of customer complaints

Intensify "Fast Quality Loops" with our customers and after-sales service partnersEnsuring Sagemcom's compliance with regulatory and societal requirements


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Sagemcom is a major player in the global markets of video hubs, Internet boxes and energy management solutions. Over the last few years, our offers have seen significant growth, because

our Group is constantly innovating in order to remain a technological leader and to be the first to offer integration of the latest technological breakthroughs on our various markets.

We aim to satisfy our customers by anticipating their needs and protecting their interests, while preserving our competitive edge thanks to profitable growth. As part of this approach, we undertake to ensure our products, activities and services meet the requirements of our stakeholders while respecting the principles of sustainable development. We are also driven by a corporate culture of continuous improvement, based on the analysis of the risks and related opportunities within the current context and Sagemcom’s purpose. In this regard, our Management system is based on five main initiatives:

Respecting the ethical rules, according to the principles of The United Nations Global Compact:• Deploying our ethical practices both internally and with our partners;• Strengthening the traceability of minerals originating from conflict zones

in our supply chains.

Ensuring the effectiveness of our processes, according to the principles of the ISO 9001 standard:• Offering our clients the best from Sagemcom, thanks to innovative products;• Developing our capacity to adapt, through an effective and customer-oriented

organisation.

Managing environmental problems, according to the principles of the ISO 14001 standard:• Committing ourselves to protecting the environment and combating climate

change;• Limiting and controlling the impact of our sites on the environment, by

preventing pollution and increasing our consumption efficiency;• Designing and distributing our products and services with a reduced impact on

the environment, thanks to a generalised application to eco-design practices and in integrating the principles of the circular economy;

Our aim is to satisfy our

customers, by anticipating

their needs and protecting their

interests

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• Extending proper environmental practices to our suppliers.

Protecting the health and safety of every person involved on our behalf, according to the principles of the ISO 45001 standard: • Protecting the health of the people who contribute to our activities, including

in our supply chain; • Guaranteeing healthy and safe working conditions; • Eliminating the dangers and reducing the risks to health and safety; • Prioritising the consultation and participation of workers.

Securing our information, according to the principles of the ISO 27001 standard:• Preserving the confidentiality, integrity, availability and traceability of information; • Assessing and managing, in an adequate manner, the risks inherent to our

activities and giving assurance to our stakeholders; • Guaranteeing the continuity of our activities.

Certifications

Sagemcom pursues an active certification policy for all of its activities and sites.

In figures

*excluding internal and customer audits

Sagemcom holds the following certifications• ISO 9001: 2015, which ensures quality management

Sagemcom BROADBANDSagemcom ENERGY & TELECOMHeadquarter and R&D - Rueil-Malmaison (France)

DR NEUHAUS TECHNOLOGYManufacturing - Rostok (Germany)

Sagemcom HUNGARYR&D - Budapest (Hungary)

Sagemcom ITALIAManufacturing - Citta di Castello (Italy)

Sagemcom TUNISIAManufacturing - Ben Arous (Tunisia)

Sagemcom MEIManufacturing - Dinan (France)

Sagemcom CHINAR&D - Shenzhen (China)

Sagemcom AFRICAN SUBSIDIARIES

Sagemcom MADRIDR&D - Madrid (Spain)

Sagemcom TUNISIAManufacturing - Ezzahra- (Tunisia)

Sagemcom S&TR&D - Megrine (Tunisia)

Sagemcom LLCR&D- Dallas (USA)

ISO 9001 - Quality

ISO 14001 - Environment

ISO 27001 - Information security

ISO 50001 - Energy management

ISO 45001 - Health and safety

Ongoing

Sagemcom DO BRAZILProduction - Manaus (Brazil)

51 active certifications, spread across 15 sites

Over four continents

More than 70 audit days a year*

6 new certifications in progress

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• ISO 14001: 2015, which concerns the environmental management of the R&D sites in Rueil-Malmaison (France) and Mégrine/Kram (Tunisia), as well as for 75% of our production sites (under preparation in Italy) and the eco-design of products.

• ISO 45001, which involves occupational health and safety management systems for production staff.

• ISO 27001: 2013, obtained in 2014, which guarantees that our management system for information security is reliable.

• ISO 50001 : 2011, for energy management in our production centre in Tunisia.

Sagemcom is actively engaged in the United Nations’ Global Compact Initiative

Sagemcom joined the United Nations Global Compact Initiative in January 2011, confirming its commitment to ethical standards, the promotion of Human Rights and respecting the rules of the International Labour Organisation, both within the Group and with its suppliers.

The United Nations Global Compact is part of a strategic policy initiative aimed at businesses, inciting them to commit to respect ten universal principles related to human, labour , and environmental rights as well as the fight against corruption.As a signatory to the Global Compact, the Sagemcom Group is committed to respecting and encouraging these principles. The Group also invites its suppliers, partners and subcontractors to adopt, support and apply these fundamental values in their respective fields of action.

These principles are approached through different areas of work described in this document. An overview of Sagemcom’s contributions to achieving Sustainable Development Objectives is set out in the appendix.

Principles of the United Nations Global Compact

Human rightsInternationally support and respect human rights.

Ensure no violation of human rights

Work

Confirm the freedom of association and the right to collective bargaining.

Confirm the suppression of any form of compulsory or forced labour.

Confirm the abolition of child labour.

Confirm the elimination of discrimination for employment.

Environment

Support an environmental approach.

Undertake initiatives to promote more environmental responsibility.

Encourage the development and spread of environmentally-friendly technologies.

Anti-corruption Fight against corruption in all of its forms, including extortion.

In 2019, our subsidiary in Ivory Coast received the triple quality, environment, and safety certification for energy and telecom networks installation activities

The Sagemcom group is

committed to respecting and

encouraging the principles of the United Nations

Global Compact

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External recognition

The Sagemcom Group is regularly assessed by independent organisations mandated by our customers. Sagemcom once again obtained Gold certification from EcoVadis in 2019 and received grade B from the CDP (previously Carbon Disclosure Project) as part of the assessment of its commitment with respect to the supply chain (Supplier Engagement Rating); elsewhere we have been doubly rewarded by the Joint Audit Cooperation (JAC).

EcoVadis manages the leading collaborative platform for the measurement of the sustainable development performance of suppliers in worldwide supply chains.

Sagemcom is in the 98th percentile, which means that our score (which has gone up by three points) is higher than 98% of the companies assessed by EcoVadis. Sagemcom has been classed as Gold since 2016, but our results continue to improve.

Overall score

Breakdown of overall scoresComparison of theme scores

Sagemcom again obtained Gold certification from EcoVadis in 2019

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2019 CSR Report - 11

Sagemcom's purchasing policy is driven by five fundamental principles and is shared by the Group's suppliers and subcontractors. These are: quality, price, lead-times, innovation and ethics. These fundamental principles determine all the measures taken by Group Purchasing in accordance with its policy.

ETHICS AND ECONOMICS


“Our suppliers have been involved in Sagemcom’s CSR initiative for several years. On the highly competitive markets where we operate, these are essential differentiating factors of

Sagemcom’s global performance in the eyes of our customers. The people who work in Purchasing, and who are responsible for our relations with our suppliers, are naturally heavily involved in this initiative through our processes.”

Thibault Decoudun, Group Director, Purchasing

Our areas of work are identified within our purchases pursuant to our corporate policy:

In 2006, Purchasing launched the Suppliers Ethics initiative, which is applicable to all our suppliers and is formally defined in an ethical charter, as part of a long-term drive for progress.

2007

• Creation of the Sagemcom ethical charter

• The first CSR audit in the supply chain to be managed by a third party

2011

• Membership in the United Nations Global Compact

2016

• New CSR strategy

• Strengthen internal knowledge and skills with two auditors dedicated to China

• EcoVadis Gold status obtention

2019

• 285 audits over the last three years

• Our Tunisian factory obtains the JAC award

• JAC award for circular economy practices

• Joining the JAC academy

Strengthening the protection of our sensitive data

Improving the information system for data exchanges with our key partners

INFORMATION SECURITYCONTROL OF PRODUCTS AND SERVICES

Strengthening the integration of customer requirements for all functions

Securing the Supplier quality required within a dynamic context

Consolidating the after-sales service support strategy by controlling warranty costs

Improving the traceability of dangerous substances

Consolidating control of our Suppliers

Enhancing the formalisation of evidence of compliance with regulatory requirements


Improving contractual coverage with our Suppliers (Supply & Master Quality Agreement)

Improving the multi-site industrial strategy: Sagemcom factories, Industrial Partners (ODM/EMS) and Supplier ecosystem

Controlling budget commitments

Securing growth with our industrial partners

SUPPORTING SAGEMCOM’S GROWTH

CORPORATE SOCIAL RESPONSIBILITY

Reducing the environmental impact of our products

Continuing to deploy our practices of professional conduct

Extending ethical monitoring and supporting our partners

Matching our teams’ skills to our current and future needs

Developing the professional dimension of our integration processes for new employees

Managing our talent and building on knowledge

DEVELOPING OUR WEALTH OF TALENT


Our suppliers are selected and improved according to a clearly defined procedure that is deployed using three tools:

In all cases, this initiative is intended to be positive and collaborative, in order to progress the entire supply chain. Every new supplier must thus adopt this approach. Before joining our supplier portfolio, every new supplier must sign Sagemcom’s ethical charter and complete a self-assessment questionnaire. The results obtained make it possible to draw up the first assessment of supplier compliance and areas for improvement. Once committed to our Ethical charter, each supplier is obliged to respect the rules and to supply the items required during the audits. These audits are not only key steps in confirming the supplier's status, but also make it possible to jointly draw up the improvement plan to reach the desired level.

Ethical charter

The Sagemcom Group’s ethical charter is based, among others, on the international labour conventions of the International Labour Organisation (ILO), the universal declaration of human rights and the UN convention on the rights of the child. Sagemcom’s ethical charter is based on 11 key principles:

Ethical charter

Self-assessment

questionnaire

Supplier selection

Follow-up audit

Improvement

Action plan

Ethical audit

The prohibition of child labour under the legal age in force in the country,

unless authorised by the ILO.

Elimination of all forms of labour that, by their nature or conditions, represent an

immediate danger or could compromise health and safety.

Respect for the freedom of association and the effective recognition of the right

to collective bargaining.

The application of a precautionary approach to problems affecting the

environment.

Initiatives that promote increased responsibility with regard to the

environment.

Acting against all forms of corruption, including extortion and bribery.

The elimination of all forms of employment or professional

discrimination.

Favouring the development and spread of environmentally-friendly

technologies.

Refusal of any complicity in violations of human rights.

The promotion and respect of the protection of human rights recognised

on an international scale.

The prohibition of all forms of compulsory or forced labour.

Each new supplier must sign the Sagemcom Ethical charter and fill out a self-assessment questionnaire


By signing this charter, suppliers agree to promote and respect the above principles, and to incite their own subcontractors and suppliers to do likewise.The ethical charter favours even greater transparency between Sagemcom and its suppliers by explaining the conditions of audits that may be carried out on the supplier’s premises, or those of its own subcontractors.Suppliers must agree to accept audits scheduled by Sagemcom of the proper application of the ethical charter and are regularly subject to a self-assessment questionnaire.

The self-assessment questionnaire

The questionnaire covers the 60 points of the ethical charter and enables suppliers to highlight the processes that they implement in their company.The goal is to assess their maturity and to identify points that can be immediately improved. It is also a valuable tool for CSR auditors when they intervene on site.

On-site audits

Audits are organised every year, on the basis of a complete risk analysis that covers the manufacturing plant, the technologies used and the processes, to verify the status of our suppliers and to support them in their improvement process. Hence, 285 audits were carried out over the last three years on different supplier panels in order to have the most complete view possible of our supply chain.These audits include 185 areas being checked. Certain points demand closer attention and guide our conduct towards our suppliers:

In order to have the most complete view possible and to ensure an independent verif ication, we use third-party auditors during the f irst supplier audit. A Sagemcom auditor systematically assists these audits, which facilitates

What is prohibitive

• Child labour• Forced labour• Fatal risks• Incomplete data• Refusal to collaborate

What is unacceptable – to be corrected immediately

• Uncontrolled chemicals• Dormitories that are locked / do not have an emergency exit• Discrimination• Corporal punishment, physical or mental harassment• No authorisation to operate (Env)

What is critical: to be corrected as a priority

• Unsafe working conditions• Poor living conditions (insalubrious dormitories, etc.)• Excessive working hours• Failure to pay the minimum wage• Absence of anti-corruption processes

285 audits have been carried out

over the last three years on

different supplier panels


the follow-up thereafter, with better knowledge of the factory and the non-conformities identif ied.

Once the audit has been completed, the auditors draw up a comprehensive report for the supplier. In the event of non-compliance, Sagemcom demands a corrective action plan and proceeds with the necessary follow-up audits. If the supplier does not respond within three months, a follow-up audit is systematically conducted. If the corrective measures are deemed to be insuff icient, another audit takes place. If the instances of non-compliance are prohibitive (child labour, forced labour or working conditions that put the lives of employees in danger), and no corrective measures are taken immediately, Sagemcom puts an end to all its business dealings with the supplier. The latter is then delisted and "blacklisted" within Sagemcom.

These audits are also an opportunity to discuss practices more generally with the suppliers and to assist them in their improvement processes, by providing follow-up indicators and in sharing good practices observed elsewhere. The indicators are a particularly useful tool for monitoring the development of our suppliers and having a shared vision for the objectives to be achieved.

We have observed a real change amongst our main suppliers, which have made signif icant progress, especially in the protection of the health and safety of their employees, all around the world.

FIEV and Quality audits, which also include inspections of environmental aspects, health and safety, and ethics, are also conducted to detect any high-risk suppliers and to trigger additional control audits.

Inventory and traceability of the chemicals used in our components

We have set up a very thorough chemicals management system in order to guarantee the compliance of our products with European Directives, and in particular with the REACH directive (1907/2006) and the RoHS directive (2011/65/EU). Our action starts with a global inventory of all the substances used in our manufacturing plants and in the components that we use.

In order to guarantee the conformity of our products with the various European directives, we have implemented an extremely rigorous chemical products management system

Countries where audits have been carried out over the last three years


A dedicated traceability system has been introduced to determine the content of SVHCs (Substances of Very High Concern) in our products. Sagemcom uses this tool to ask its suppliers to provide information on the SVHC content of the materials they use. Since the list of SVHCs is updated every six months by the ECHA (European Chemicals Agency), our suppliers are questioned on a regular basis. We ask them to send us complete physical-chemical descriptions that contain all the substances present in the components. This information is then compiled in a database. In this way, we can know the status of each product. This research covers our entire supply chain, which is made up of hundreds of suppliers and tens of thousands of components.

Conflict minerals

In line with the RMI (Responsible Minerals Initiative), Sagemcom also seeks to establish the traceability of four sensitive minerals (“3TG”): tin, tungsten, tantalum and gold. We demand that our suppliers complete the CFSI (CMRT) reporting template, which must be provided before the launch of the mass production of chip-sets, tantalum capacitors, printed circuits,

Reporting covering Conflict minerals Breakdown by response type


plastics and welds. In particular, this measure improves our knowledge of the supply chain of every type of mineral. Although at this stage the Group cannot commit to products with 0% raw materials f rom conflict zones, it guarantees to give all the information in its possession to its customers when requested.The supply chain is represented below. At the end of 2019, more than 96% of purchased components, or more than thirteen billion components, were covered by a supplier reporting process. Elsewhere, we have started to integrate Cobalt into our traceability system.On this basis; Sagemcom provides its clients with a status report in the form of a CMRT, as well as a detailed analysis of the information provided by the suppliers, especially regarding the location of the ref iners used.

Critical raw materials

Since 2011, the European commission has def ined a tri-annual list of raw materials, which are critical for the European economy as part of its Raw Materials Initiative, launched in 2008. 27 raw materials were identif ied as critical in 2017.

Our work consists, before all else, in including the use of these materials in our products. This of course involves identifying all the substances present in each one of the components. In doing so, we identify potential uses and work on the diversif ication of our supply sources, from a geographical (the source of materials) and technological (substitution solutions) point of view.

We have been able to ensure that not all these critical materials are used in our products; this enables us to envisage an approach within a restricted scope and risk-based management, which corresponds to our strategy regarding the conditions in the countries most exposed to climate change.

Within the same product, the importance of these materials can vary, especially according to the number of components using them. The detailed analysis of their use makes it possible to assess their strategic importance for the Group and to incorporate the issue into our risk management strategy.

Location of foundries in the product supply chain

number of foundries


Close-Up On Suppliers’ Days

In order to maintain a strong link with our suppliers and to establish a long-term partnership, Sagemcom organises two meetings with suppliers: one in Europe and one in Asia. This is not only an opportunity to have numerous discussions, but also to reward the suppliers who most closely comply with our values!

Example of CRM used in a product (number of components assembled) positioned in the European assessment of the criticality of raw materials


Ethics is one of Sagemcom’s fundamental principles, who require each one of their employees and partners to respect good practices, whether that be at a social, environmental, societal or commercial level. To emphasise this commitment, Sagemcom has created a corruption prevention guide designed to be applied to all its subsidiaries across the world.

PREVENTING CORRUPTION


Sagemcom notably made this commitment when it joined the United Nations Global Compact in 2011.By its international presence; the Group is particularly vulnerable to the risk of corruption, but contrary to popular belief, this risk exists in all countries, regardless of their geographical, economic or political situation.Sagemcom is also obliged to comply with a certain number of laws and regulations in order to be able to carry out its activities completely legally. Amongst these laws and regulations, those governing the f ight against corruption and fraudulent practices (whether this be between private companies, or private companies and government entities) are taking on an increasingly critical importance.

The f ight against corruption is therefore a major issue for companies and involves all their different staff, regardless of their level (manager, employee, commercial partner). In addition to the legal risks, corruption subjects the company to the negative impact of risks to its image and reputation and therefore commercial risks and the danger of destabilising its internal organisation (loss of market, clients, subsidiary closures, etc.).

Because of their high visibility, our customers are particularly sensitive to ethical issues, which can tarnish their reputation.

They thus require perfect control and greater transparency from all their commercial partners in this sense. Furthermore, they may be held liable as clients for ethical problems in the supply chain, without even being directly involved. This requirement is therefore extended to their partners’ suppliers.

Sagemcom is committed to expanding its corporate responsibility commitments to its suppliers, which resulted in particular in 2007 in the development of a “suppliers’” ethical charter, with which its partners must comply. The particular attention that Sagemcom pays to the selection and monitoring (especially through audits) of its partners is an approach that demonstrates not only our Group's social responsibility, but also its desire to support its suppliers with a view to helping them progress.. This initiative not only demonstrates the corporate social responsibility of our Group, but also its willingness to support its suppliers in order to help them progress.

In practical terms, Sagemcom employees must all therefore be particularly vigilant to:• avoid bribing, directly or indirectly, to benefit from improper commercial

advantages;• not accept bribes, directly or indirectly, to offer improper commercial

advantages.In reality, corruption can take a range of forms as diverse as they are unsuspected or seemingly harmless. Corruption is not limited to a simple exchange of money. The object of value intended for the bribe may be disguised as a gift, an invitation to an event. Monetary payments may be hidden in the form of fake bills, consultant fees, etc. Corruption exists therefore in numerous forms but beyond that, there are some “grey areas” on which we need to focus.

We have developed a corruption prevention guide to challenge popular beliefs and to make our company staff aware of the different mechanisms

The fight against corruption, and more generally for the integrity of economic life, cannot be led without the corporate sector. Furthermore, for several years, Sagemcom has committed itself

to developing its activities through its employees and partners in a transparent, fair and honest way.

Sagemcom is committed to extending its corporate

responsibility commitments to

its suppliers


of corruption. It aims to explicitly reaff irm the standards and principles which dictate our management to respect thorough measures set up to f ight against corruption.

Its aim is to guide all the Group’s employees and managers in their daily activities, providing them with the necessary practical knowledge, by explaining to them how to act in accordance with the anti-corruption rules, through a presentation of the most important rules, situations likely to be encountered the most and procedures to follow.

Due to there being multiple forms of corruption, several solution outlines are offered, which take the form of examples of action to take or reaction to have. It should be noted, however, that the responses suggested are not f ixed, but allow common sense, which is expected of everyone, to play a role. This is not a collection of systematically effective solutions, but a vigilance stimulation tool!

The prevention of corruption in the company can only progress with and for the men and women within it. This supposes that each of the Group’s employees must act and involve themselves on a day-to-day basis in this initiative with respect to the principles of this guide. This is why training tools have been put in place with a specif ic e-learning programme and in-person training for the personnel most at risk. We are aware that this involves a need for advice and support to apply this policy in all of our operations, especially for employees susceptible to being the most at risk. Besides, some situations are likely to present diff iculties in terms of ethical choices, the solution not always being immediate or obvious.

This is the reason for which the Group has developed support systems through on which staff and stakeholders can rely:• On our hotline [email protected]• On our professional alert system: https://incident.sagemcom.com

Central to our ethical principles, openness provides the focus for our HR policy and the measures taken in favour of diversity, inclusiveness and equal opportunities. Our aim is to ensure friendliness within teams, encourage individual development and innovation, while ensuring respect for personal differences.

DIVERSITY AND EQUAL OPPORTUNITIES


Building on our cultural diversity

Sagemcom has nearly 5,000 employees in some 50 countries the around world, all with different cultures. The multiculturalism of the Group's workforce is a real lever for the diversity of talents, innovation, cooperation and competitiveness on which Sagemcom can capitalise. United around the Group's common values, we strive to continue to support our employees by setting up special training courses to pass on the keys for mutual understanding and the ways to optimise cooperation between the members of our multicultural teams. Support for internationalisation is one of the priorities of our training plan. Consequently, numerous employees have taken part in multicultural training courses, applied according to the main countries in which the Group operates (Brazil, China, Germany, Tunisia and Hungary).

Nurturing and encouraging diversity

The diversity of our employees is a source of innovation, enrichment and eff iciency. For our employees, working in an environment that encourages diversity and inclusion allows everyone to realise their full potential while actively contributing to the Group's performance.

One of our main challenges in diversity is professional equality between men and women. In our traditionally masculine sector of activity, this involves making diversity a reality at every level in the company. Even though the rate of feminisation of our international workforce continues to increase and now stands at 47%, it is essential that the share of women, especially in our more technically advanced or managerial jobs improves and balances with that of men, especially in the subsidiaries and professions where this imbalance is the most pressing.Considering that professional equality between women and men is a vector for collective performance, Sagemcom continued its awareness-raising measures designed to change the attitude and behaviour of all our male and female employees, students, trainers, partners, etc.

The mixing of origins and experiences is an integral part of the Sagemcom group’s corporate culture. Whatever the country, our subsidiaries aim to have their teams reflect the diversity of the

societies in which they work.


So in France, to go further still and to structure this initiative, a company agreement was signed in June 2019, covering six areas of action for the benefit of diversity: the sustainable integration of diversity within the Group’s culture, access to employment, the equal pay and salary policy, the career path, the retention of disabled employees and the search for the work-life balance. The signing of this agreement is a good illustration of the coordination of labour relations within the Sagemcom group and the intention to jointly build a corporate project in which people are the most important factor. The latest agreement, drawn up in cooperation with the Sagemcom general Management and union organisations, is not a trial. Our commitment already resulted in 2016 in the signing of independent agreements on the subjects of professional equality between men and women, as well as on the f ight against discrimination against the employment and integration of disabled people. The statement drawn up of these two agreements has made it possible to emphasise the notable progress made and the importance of sharing our synergies to jointly take action on the topics asking for a common cause: to make diversity one of our central concerns.

Good practices in favour of professional equality are not limited to the commitments made in this agreement, since our R&D site in Tunisia is closely involved in this issue by supporting the FACE* programme that promotes gender equality in Tunisia. As a result, the rate of female graduates recruited by our R&D centre in Tunisia continues to progress (36% of those recruited in 2017 were women, 41% in 2018 and 46% in 2019).

*The FACE* programme: A programme that aims to improve companies’ understanding of the

question of professional equality and to encourage concrete actions in businesses in favour

of this equality.

Internal communication is also a means for promoting professional equality and making it a part of the Group’s culture in the long term. For example, each ComIn, the magazine distributed quarterly by the Group, contains prof iles of female employees. Some issues are also written from the point of view of professional equality by developing themes such as job desegregation and diversity.Sagemcom also believes that a policy of promoting diversity must also help to prevent and f ight against all forms of discrimination, to make diversity one of the levers of its performance. This policy includes the objectif ication


of human resource management processes (recruitment, training, career, etc.). It also involves promoting positive measures designed to ensure similar working and career conditions for all.

Sagemcom has asserted its commitment to fight against discrimination by being one of the first companies to join the “A competence égale” initiative. This organisation, which is engaged in the fight against all forms of discrimination in recruitment and in the promotion of diversity in the work place, helps us to audit our recruitment tools and processes, to train our recruitment staff and to provide resources and tools, as part of a process to achieve continual improvement. Sagemcom has also signed the “A compétence égale” charter and clearly confirmed its commitment to combating all forms of discrimination in every stage of the recruitment process.The age mix within the Group is also a major issue. With almost a quarter of senior staff in French companies, we must prepare for employment and generational changes. For this reason, numerous actions have been conducted over the past few years, particularly regarding the educational sector, in order to recruit young staff. As a result, between 2016 and 2019, the proportion of young staff in France doubled, from 9% to 18%. This being said, the challenge will not be met to the detriment of older employees, since Sagemcom intends to continue its policy of maintaining and developing the jobs of these employees. This commitment is formalised in an f ive-year agreement, “Generation Contract” 2017-2021, in which Sagemcom agrees to pursue an active policy to keep seniors in the workplace: recruiting senior employees (4% of hires since signing the agreement), internal mobility (in 2019, 25% of internal mobility involved senior employees), training (in 2019, 23% of those starting training were senior employees), etc.

At the same time, our talent identification and knowledge and skills transfer systems are based on our "Experts" pathway, which includes 26% of senior employees.Integrating the disabled and keeping them in work represents another major challenge for Sagemcom. Our failure to achieve our ambitions and the shortfall of our actions on the question of disability, especially in France, reflects the lack of qualified personnel and professional training on a national

Age pyramid 31/12/2019

Integrating the disabled and

keeping them in the workforce

represents another major challenge for

Sagemcom


scale. Nevertheless, Sagemcom intends to confirm its ambition to welcome every talent and to provide appropriate support for employees with special needs by taking actions to support the integration of the disabled into the world of work and to keep them there. A Diversity agreement signed in 2019 highlighted the measures taken in favour of the durable integration of disabled employees, working conditions that support their career development and allow them to stay in work, the development of subcontracting with companies that employ the disabled and support for employees who take care of a disabled person. Some examples illustrate these commitments: all the employment offers published in France mention “Sagemcom, a company that welcomes those with disabilities,” disabled employees have been kept in their jobs thanks to special conditions, alternating working from home and on-site and a partnership with companies from a protected environment has been signed to sort and recover waste on the Rueil-Malmaison Campus (an initiative which is both a supportive and environmental measure).

This commitment also takes the form of local initiatives, such as supporting Sagemcom at the “Regards Croisés” festival, which screens short f ilms on the theme of “Jobs and Disability, disability does not prevent talent”. Our R&D centre in Dallas supports Adaptive Spirit, which brings together all the cable operators in the United States with a view to funding the American Paralympic skiing team. At Rueil-Malmaison, Sagemcom employees also demonstrate their motivation to defend the disabled cause, having participated in for several years, the solidarity course organised by Special Olympics France or even by supporting, since 2019, the DupDay operation enabling disabled people to spend a day alongside a pro bono professional, to f ind out about a job or company and eventually create vocations.

Sparking vocations and supporting equal opportunities

A large number of initiatives are being taken locally to forge links between the world of education and work, in order to promote diversity and equal opportunities and to expand the age mix within the Group.As an example, Sagemcom has supported Article 1 for almost ten years, an NGO who supports the integration of young people from underprivileged backgrounds into the workplace: this makes employment abroad possible, supports financing of studies and integration through employment. Sagemcom is one of the organisation’s main partners, alongside SFR, Orange, Alcatel Lucent and Nokia.In 2019 in France, f ifteen volunteering employees committed to helping young people as part of different Article 1 programmes.


Sagemcom has also been actively involved in a partnership with Science Factor to promote scientific studies for girls in secondary school and college. In this competition, the candidates must present as a team an innovative scientif ic or technical project, an invention with a clearly demonstrated positive impact in social, economic or environmental terms. Not only does this competition reflect our values of creativity, performance and team power while respecting the environment, but it also makes it possible to act in favour of raising the awareness of young girls about scientif ic studies, a population group that is under-represented in the engineering schools we covet to attract the best skills and promote diversity.

Sagemcom has also committed to the “Cravate Solidaire” cause, an NGO which organises the collection of clothes in companies for the benefit of candidates for professional integration. Sagemcom has already taken part in several collections which turned out to be very successful. In July 2019, almost 200 kg of clothes were collected for the Rueil-Malmaison campus.In Tunisia, a range of initiatives were launched in 2019 to help people in need. For example, the charitable scheme “100 cartables” enabled funds to be collected to distribute school equipment to deprived pupils. For the

Sagemcom intends to

continue its commitment

to facilitate the integration

of young people into the

professional world by

recruiting International Volunteers in

Business (IVB)


past f ive years, the employees of our Tunisian R&D centre have shown great generosity in supporting this initiative in favour of equal opportunities.

Finally, Sagemcom intends to continue its commitment to facilitate the integration of young people into the professional world by recruiting International Volunteers in Business (IVB). Rich and individualised career paths wherever the Group is present are offered to young people by implementing a policy suitable for their integration and support. The IVB scheme is also a means of attracting and developing the best skills.


Caring for our employees and supporting them in their professional development throughout their careers within the Group means ensuring their motivation and professionalism in support of the growth of our activities.

SUPPORT FOR EMPLOYEES


We strive to increase our ability to attract, develop and retain the best skills to meet the needs of our business and contribute to our growth.

To do so, we have adopted an initiative to renew the employer brand in order to encourage the best profiles, particularly among young people, to join the Group. Numerous actions have thus been taken throughout the Group.

The development of our presence on social media has made it possible to strengthen our brand as an employer and to attract highly coveted profiles. In Hungary for example, the use of LinkedIn as a new recruitment channel has made it possible not only to promote Sagemcom in a country with full employment, but also to strengthen our presence in the local IT sector and to highlight vacancies for candidates keen to join us. In addition, the dissemination of profiles of Group employees on social networks has allowed us to promote the possibility of pursuing rich and varied careers within Sagemcom.

The development of the employer brand also goes hand-in-hand with Sagemcom’s presence in the educational environment, to get to know and attract young talent. Hence, partnerships with certain schools have been set up and numerous initiatives organised: participation in forums or round tables, visits to the company, speed recruiting or even evening outings to the cinema.

Sagemcom, committed to combating discrimination, is convinced that diversity and the desegregation of teams encourages long-term creativity and operational complementarity. It is therefore essential to make staff aware of this to recruit without discriminating. With this in mind, Sagemcom organises training and

Sagemcom has welcomed students from the Centrale Supelec engineering schoolOn October 30th 2019, Sagemcom received a visit from students from Centrale Supelec to its Rueil Malmaison campus.

Employer brand: let’s share on Linkedin!As part of our recruitment, Linkedin is an essential visibility factor.


has updated a guide “Put your recruiter expertise to use with increased equality of opportunity,” which makes it possible to decode discriminatory situations, too often ignored or played down, in order to enable everyone to adopt appropriate behaviour.

Work-study programmes and internships constitute some of the adapted and effective methods of preparing for professional life and integration into the world of work. The Sagemcom group is firmly committed to a policy of integrating young people into the workplace in particular through these methods. The "responsible" policy for work-study courses and internships is therefore a two-way street:• On the one hand, based on training

and integration into working life, it gives young people the opportunity to obtain a diploma and a first professional experience that will improve their employability;

• And on the other, based on pre-recruitment, particularly for "core business" jobs, in line with the Group's needs.

In 2019, Sagemcom's French subsidiaries welcomed almost 100 people into work-study programmes and internships. A quarter of them were hired after their work-study programme or internship (vs. 10% in 2018).

In 2018, our R&D centre in Tunisia opened the “SS&T Campus”. This campus initiates and trains young graduates in science and technology in our professions (on-board IT development techniques and soft skills). The campus has two goals: to encourage the integration of young people into employment and to enable Sagemcom to acquire competent resources that are directly operational.

We also take care to offer all employees who join our Group, regardless of their status, an integration pathway that is broken down into various structuring and personalised measures, based on existing good practices within the Group's companies (welcome booklet, special intranet section, integration workshop, etc.). Every subsidiary takes actions adapted to the local circumstances in favour of the long-term integration of new recruits.

Our production plant in Tunisia organises integration dinners to celebrate the arrival of new employees and to share our values and strategic priorities. It is also an opportunity to look back at their integration as part of the continual improvement process.

In 2019, our site in Taden, wishing to welcome these new recruits in optimal conditions, worked to improve their integration course, with tours of the site, presentations on the health and safety rules on-site, strong messages from the managers, etc.

The Wel’com integration programme in France enables new recruits to become durably integrated into the Group. All the contributors to the integration process (manager, work team, HR, etc.) are involved and made aware of the importance of offering the best possible integration. In addition, an annual “Promo” event is organised in honour of the employees who arrived the previous year. In 2019, a cooking challenge was organised for new employees and the Management Committee, providing an informal opportunity to talk, challenge and show team spirit.

Work-study programmes and internships constitute some of the adapted and effective methods of preparing for professional life and integration into the world of work


Developing and cultivating skills

Individual development and progress interviews held each year in all of the Group's subsidiaries is one of the fundamental cornerstones of our human resources policy. The manager, the employees and the company have a shared interest in this interview, because it helps to achieve four major objectives with the common goal of making individual and collective progress:

Conducting these interviews allows us to control the Group's individual and collective skills through the implementation of concrete measures that support the professional development of our employees (training, individual action plan, professional development, etc.). In France, all of our employees also benefit from a biannual career plan interview, focusing on their prospects for professional development in order to enable them to actively take part in our own development.

Sagemcom sees training as an investment for the future, a tool for improving economic performance and addressing social issues. In addition, the ability to identify the skills needed to anticipate development and meet market and customer requirements is a key factor in competitiveness. Training is therefore a real lever for optimising the potential and performance of our employees. Every year, we devote a major effort to adapt, maintain and develop the skills of our employees. In France for example, 3% of payroll is set aside each year for professional training. In 2019, nearly 70% of employees benefited from at least one training course.We strive to ensure that our employees have access to fair and non-discriminatory training. We also pay special attention to employees who have not received training for three years, to support the employability and development of all our employees throughout their careers.

For several years, training schemes have been organised throughout the Group to assist and develop the teams from the different subsidiaries, whose interactions are becoming increasingly significant.

France and our R&D centre in Tunisia have both launched a “Responsible Management” course to help and improve the professionalism of managerial

DISCUSS AND ANALYSE

Fundamental subjects, away from the every-

day imperatives

ASSESS AND DIAGNOSE

Understand, assess and value skills and

commitment

PROGRESS

Support employees so they succeed and

contribute to the development of

activities

MOBILISE

Recognise achievements and

results and mobilise around “SMARTER”

objectives

> > >

A harmonised induction programme

The induction programme for new arrivals on the site has been improved. In an effort to harmonise the introductions given by each manager who organises tours of the site for new arrivals, large posters have been installed in the most strategic places, like the entrance to each building or the work zones. These posters recap the main safety rules and illustrate the measures that can reduce the risk of an accident. Consequently, it is difficult to forget the rules applying to safety, non-disclosure and good conduct, emergency instructions or protective equipment.

Sagemcom sees training as an

investment for the future, a tool

for improving economic

performance and addressing social

issues


practices. These two courses have been drawn up with perfect consistency to respond to the issues and objectives of the Group, while adapting their content and their pedagogical approach to the local context. This modular programme allows every manager to personalise their training course by choosing the programmes that best suit their needs.

To help develop means of organising the R&D teams’ work, a broad, bespoke training programme has been drawn up. The aim: to become an “Agile” organisation. As a result, different levels of assistance have been set up: making managers aware of this new organisational method, training teams, regular on-the-spot coaching to facilitate the transition towards the management of an Agile project, etc. Conscious of the effects on the organisation of work and collaborative methods, Sagemcom has naturally set up support for large-scale change. Initiated in France, this programme was then deployed at SS&T. At the end of 2019, even if the programme is still being deployed, the investment has been considerable: nearly 250 interns, more than 3200 hours of training and some 40 days of coaching.

Sagemcom’s investment in skills development is also illustrated by other local initiatives. On our manufacturing site in Taden for example, “Lean” practices are disseminated thanks to the 7Shapes School, an educational 3D video game showing daily scenes and actions within the plant. In a game-like virtual environment, teams discover the main “Lean” principles, which use collective intelligence to boost diversity.

In Tunisia, our manufacturing site part finances some employees’ engineering studies. A win-win initiative which enables the stakeholders to develop and evolve within the Group and Sagemcom to make their employees more professional in order to gain new skills.Sagemcom also aims to strengthen their measures in favour of vocational training through the development of new learning systems and methods. One example is the “Sagemcom Smart Academy” e-learning platform that provides flexible access to digital training courses. After being deployed in R&D and manufacturing in Tunisia, the platform was introduced in France in 2017 and has gradually been made available to all the Group subsidiaries. This platform offers a number of advantages by broadening the training offer, optimising training resources, building individual skills development programmes, offering easier access to training, etc.

In order to maintain a high level of skills in their teams, Sagemcom is continuing to develop and drive our “Expert” pathway. Each year, an Expert Committee meets to select the employees invited to join the pathway. The Experts are

Sagemcom also aims to strengthen its measures in favour of vocational training through the development of new learning systems and methods


recognised for their skills in domains that are key to Sagemcom. They play an important role in the distribution and sharing of their knowledge (especially via internal training), in innovation and also in advising and supporting the teams or even influencing the Group.

Encouraging and diversifying careers in the Group

To retain our employees, we support them throughout their career within the Group, by offering them rich and rewarding careers. a policy has encouraged our employees' attachment to Sagemcom.

The publication of a job mobility charter has made it possible to define the policy targeted by the Group in this area. Mobility promotes creativity and greater dynamism in our business, opens up business units and mixes professional experiences and backgrounds conducive to the development of our organisation and the women and men within it. Now, all vacancies are open to internal candidates and are published on our vacancies site, which can be accessed by every employee.

This information was completed by the setting up of a recruitment/mobility committee to facilitate and supervise the careers of our employees within the Group. France has set itself the target of filling one third of its vacancies through internal mobility. In 2019, this commitment was widely exceeded as 45% of vacancies were filled internally.

In addition, employees can indicate their wish to change jobs, both within the Group and its subsidiaries, be it cross-company, vertically or geographically, during their individual assessment and progress interviews and/or, for employees working in France, their professional interviews.

Sagemcom also supports the diversity of professional careers by promoting its “Experts” career path, alongside the managerial path. It allows us to recognise the expertise and acquisition by certain employees of specific skills in a key area for the Group. Our Experts benefit from the recognition of their skills through the transmission of their knowledge and their role as company representatives and, in return, the Group capitalises and invests in areas of strategic expertise which contribute to its performance.

Sharing and uniting

Sagemcom's human resources policy is also reflected in awareness-raising, sharing and cohesive measures designed to bring employees together.

For example, a certain number of measures are implemented throughout the year to promote the understanding of the Group's strategy by all of our employees, support Sagemcom's values and foster the collective dynamic.

These actions encourage everyone to engage in the implementation of our strategy and support the growth of the Group.

Corporate headquarters holds six-monthly meetings to present the results and strategic directions to all the employees. Elsewhere, numerous federating events are organised in the subsidiaries.

Every year, SS&T invites its employees to take part in a family day. Employees and their families come together to share a pleasant moment with their colleagues, partners, parents and children.In France, several events marked 2019. Notably, a giant “Guess Who” was played at the summer party. All the employees on the Rueil-Malmaison campus took part in the game and found themselves in a friendly atmosphere.

Sagemcom also supports the diversity

of professional careers by

promoting its “Experts” career path, alongside the managerial

path


Dialogue between management and labour as a vector of sustainable social support

Through that social dialogue, the Group strives to find the best balance between the needs of the company and the interests of employees, in order to better support the development of its activities and the people who contribute to it.

The last few years have been marked by a particularly rich social dialogue.

At a corporate level, a wide range of agreements and structuring action plans have been signed and implemented (diversity, the right to disconnect, effective wages, working time, remote working, psycho-social risk prevention plan, generation contract, etc.). These agreements and action plans are the subject of a specific communication in the “Social dialogue” section of the intranet, allowing employees to consult them at any time, and are followed up each year, at which time the adjustments to be considered and the progress obtained is shared within the framework of a monitoring committee.

Our Taden manufacturing site introduced a single staff delegation that combines the various instances (staff representatives, health and safety committee, works council). In 2017, this single staff delegation worked with management on the deployment of an action plan to prevent psycho-social risks that was adapted to the local situation. The results of the plan are assessed every year by a monitoring commission.


Our responsibility and our commitment are to create the conditions that guarantee the physical and mental integrity and health of all those present at our sites, and beyond that, a framework that promotes quality of life at work. The labour policy within the Group extends the positive and effective initiatives already under way, and also introduces a new trend of increased investment in prevention, both to improve working conditions and to promote an environment conducive to the development of our employees and our business activities.

HEALTH, SAFETY AND WELL-BEING AT WORK


Eliminating danger, reducing risks, occupational diseases, serious accidents and the most frequent accidents, are all top priorities for Sagemcom. Our goal is to reach "0 accidents". While this objective

represents a challenge, it remains the only one that is feasible with regard to the issues at stake and requires the involvement and concerted effort of everyone at every level.

Taking action to ensure safety at work

The safety of our employees is subject to a risk analysis for each business line. This allows us to anticipate risks as much as possible through preventive and protective measures, both individual and collective. This analysis is reviewed and updated each year but also every time a new activity or process is created. Central to our concerns are fire safety and protection against electric risks and exposure to chemicals. Various procedures have been established to manage the risks to the health and safety of employees:• Risk assessment• Legal requirements• Validation of equipment• Accident recording• Preventive and/or corrective measures• Management of dangerous products• Treatment of dangerous products• etc.

All of our employees are trained in occupational safety from the recruitment process onwards, and throughout their career within the Group. In order to minimise the risks, personal protection equipment is made available to everyone, in order to supplement the collective preventive actions .

In addition, employees are also involved in the definition of safety instructions: this is essential to ensure that the instructions and the associated equipment (gloves, glasses, etc.) are compatible with their daily lives.

We also take into account the technological developments affecting our production tools (for example the integration of automated lines) in the mapping and management of new risks. Safety analyses in every situation (including maintenance) are carried out, and specific rules are laid down. They are complemented by operator training sessions, and of course by the provision of suitable equipment.

The Group has therefore set up all the necessary means and equipment to detect and deal with emergency situations. These situations are tested annually or more frequently, depending on their impacts.

The results are then reported each month by the local management. An overview is held mid-year to verify that the actual results are in line with the objectives. Corrective measures are set up if this is not the case. The annual results are finally presented and analysed by the Executive Management.Finally, in addition to the measures taken for production, processes have also been set up for teams handling electrical or gas products: as a result, even without certification, the same rules are applied to them. For example, every employee who works near an electrical product or machine must take training

All of our employees

are trained in occupational

safety from the recruitment

process onwards, and

throughout their career within the

Group


to become a qualified electrical worker. At the end of this training, and subject to passing the final exam, an electrical qualification certificate is then given. Dedicated safety systems for electric shocks, fires and explosions are also installed within our laboratories.In Italy, within our factory in Citta di Castelo, a QSE (Quality Safety Environment) manager has been named to oversee the renovation of the plant and to ensure the health and safety of employees. Furthermore, international standards (ISO 14001 and 45001) are used as a reference for the management of the environment and safety on the site.

Within our Tunisian plants, every measure is taken to prevent risks (noise pollution, chemical products, psychosocial risks, etc.) to which our employees may be subjected. To preserve their health, working conditions are regularly audited and recommendations are issued, with a view to continuous improvement.

Taking care of our employees

Sagemcom does not intend to limit its commitment to safety, but wishes to commit to health as well by deploying a prevention initiative.

CERTIFICATIONISO 45001:Sagemcom's safety policy is based on OHSAS 18001 certification, particularly for production sites. For example, our Tunisian production site, where the vast majority of our manufacturing is located, has been OHSAS 18001 certified by AFNOR since 2008, and ISO 45001 since 2018.

WORK POSTUREAdjusting and arranging your computerised workstation properly allows you to adopt a natural and comfortable posture.For the planning to be profitable, your work must also be properly organised.


Regarding our Tunisian research and development teams, an extended medical service (contracted doctor, occupational doctor, physiotherapist, health and hygiene officers) is available to everyone every day of the week.

With this aim, the Group pursued action plans along several lines in 2019:• Develop preventive and ergonomic procedures in the design of new tools

and premises or the preparation before taking over a workstation and thus reducing the risks including the onset of Musculoskeletal Disorders (MSD). An e-learning module adapted to the group’s activities was introduced to prevent the onset of MSDs, for example by addressing work on screens or handling operations. In Manaus, Brazil, the first 20 minutes of the working day are devoted to flexibility exercises before starting a job, to prevent MSDs. The success of this initiative resulted in its extension to our site in Taden, where staff members now do exercises to warm up their muscles before each shift. In 2019, the SS&T site also deployed a major project to prevent MSDs, supplemented by a communication campaign designed to promote best practices, especially in terms of posture. A safety day was organised on the Taden site, inviting employees to take part in a range of workshops (prevention of accidents at work, use of the rest room, etc.).

• Involve Occupational Health and Occupational Health Services, beyond medical surveillance, by providing advice designed to have employees participate in the process of preventing occupational risks (hardship, travel, etc.) but more generally to encourage employees to adopt healthy lifestyles. This advice is given either individually or during collective information and awareness

sessions, as in France or China, as part of information campaigns or visits to workshops, offices, or even during organising information and prevention campaigns. Let’s take the example of “Pink October,” a campaign set up on the SS&T site in Tunisia, aiming to make employees aware of the risk of heart cancer and ways of preventing it, or even “Diabetes Month,” also at SS&T, which informs of the dangers and symptoms of diabetes. Our Tunisian factories are not left out with several actions such as screening for breast cancer, diabetes and high blood pressure as well as awareness campaigns on subjects such as breastfeeding.

• Promoting access to a high level of healthcare and welfare coverage for every employee: regardless of their geographical location, Sagemcom provides its employees with reimbursement coverage for medical care, thus enabling them to preserve their health and, if necessary, that of their family.

Well-being at work, one of our central concerns

We pay close attention to the quality of life at work and we are developing initiatives to offer employees a working environment conducive to their development


and the reconciliation of their professional and personal lives, which also helps to develop our corporate performance.

The well-being of employees is dependent on the organisation of the company, its mode of operation, its management and dimensions such as the quality of interpersonal relations and personal guidance.

Sagemcom implements several initiatives on these themes:• Particular attention is given to job organisation and workloads as well as their

potential impact on employees' lives: the annual interview system that allows every employee to indicate their feelings about the workload, organisation and the balance between work and personal life, irrespective of the employee's working time (counted in hours, days with or without reference to working hours) or their geographical location came under closer scrutiny, and 100% of the escalated professional difficulties were addressed.

• Seeking to optimise the quality of life at work is also part of a process to prevent psychosocial risks. In France, a prevention plan was the framework for our approach and strives first and foremost to reduce the risks at the source in order to obtain deep and lasting improvements. The effects of the implementation of this policy are assessed every year, and the measures, if necessary, are updated within the framework of a Monitoring Committee in conjunction with the Staff Representatives and Occupational Medicine. The success of this method of prevention, confirmed by the Occupational Health Services, continued in 2019, with the deployment of a third action plan. In parallel, other measures are being taken in our subsidiaries, such as in China, to provide time and space for employees to unwind after the working day, with the organisation of daily sports sessions (tennis, basketball, etc.).

• The question of the balance between the different times of life is addressed through a number of specific measures. Numerous actions were taken in this field in France in 2019, in particular following the signing of an agreement on employees’ right to disconnect in an attempt to regulate the use of digital tools. In addition to the existing outreach services at the Rueil-Malmaison site (concierge service, transport shuttle, etc.), Sagemcom is helping to meet the demands of work and private life by addressing the demands of every aspect of parenthood by publishing a 360° guide to being a parent. The improved integration of the issues related to parenthood has also been extended to other countries, such as China, where further measures to organise working time have been taken to help new parents.

This means developing each Manager’s ability to manage their teams and activities in a balanced way between expected performance and employees' needs

Feeling informed and being a member of a team or a group, is a first prerequisite for the investment and interest found in work


A close look at the modernisation of our industrial system

The group’s growth strategy has seen a significant rise in our production volumes over recent years. We have moved on from around 20 million products per year, to more than 40 million in 2019. It is for this reason that our Group has chosen to increase its production capacity on different industrial sites with the aim of having a completely redesigned industrial system in 2020. High standards and quality must be met to guarantee our customers high-performance manufacturing methods that meet the latest industry standards.

The Sagemcom Multi-Energy site in Taden (Côtes d'Armor) comprises, over a surface area of 15,000 sq. m, two production buildings each with nearly 2,000 sq. m of floorspace, and is specialised in the manufacturing of Gazpar smart meters for Engie and Linky for Enedis. This industrial site is the result of the intention of Sagemcom and its employees to convert the former Dinan photo printers and fax consumables factory into smart metering. The initiative enabled the retraining of 32 employees in 2014. The Sagemcom MEI site currently has around 70 employees.

The Ezzahra site (Tunisia) was inaugurated in April 2019. This brand new site is dedicated to the manufacturing of our AVS and BBS products. As for the neighbouring Ben Arous site, it has been completely redesigned to meet the growing needs for the manufacturing of smart meters. By the end of 2020,

Sagemcom MEI

Sagemcom Ezzahra Tunisia


our two sites in Tunisia will have been redesigned to meet the requirements of the highest European standards!

The site of Sagemcom Italia SpA. in Città di Castello specialises in the manufacturing of multi-energy meters. Following the integration of Meter Italia into our Group, our subsidiary, Sagemcom Energy & Telecom benefits from a 6,500 sq. m production site with a high level of expertise in the production of multi-energy meters. In addition, by employing more than 300 employees, Sagemcom actively participates in the creation of new know-how in the local employment area.

Sagemcom Italia SpA


At Sagemcom, acting to protect the environment firstly means designing products and services that contribute to preserving the planet’s ecological balance. But it also means limiting the impact of its activities on the local ecosystems by taking the environmental and economic situations of different markets into consideration.

ENVIRONMENT


As part of the ISO 14001 certification, Sagemcom’s sites reduce the impact of their everyday operations on the environment. We focus closely on energy consumption, which represents the

most significant aspect of the impacts of our sites. Thus in 2016, the overall impact of electricity on Sagemcom’s sites dropped by 14% in relation to revenue, with a particular emphasis on our plant in Tunisia, which was ISO 50001-certified for energy management in 2015-2016.

Reducing consumption and emissions on our sitesSagemcom established a policy to obtain ISO 14001 certification for its main operational sites over ten years ago. In accordance with the regulations, and those applying to classified facilities in particular, we are determined to control environmental aspects, such as pollution of the air, water and soil, noise nuisances, waste production, consumption (water, energy, etc.) and the management of hazardous substances.

These measures are taken in our establishments under the responsibility of the Site Manager, in close collaboration with the environmental officers and according to continual improvement processes.

In comparison with the preceding years, an analysis of the 2019 water / gas / electricity consumption demonstrates the importance of the energy efficiency of our sites, relative to other forms of consumption.

Our production plant in Tunisia is particularly close to the heart of our environmental concerns and benefits from specific energy controls in the form of an ISO 50001-certified management system.

Electricity is the main source of Sagemcom sites’ environmental impact, mainly due to production in Tunisia, separated into 2 plants in 2019: the Ben Arous factory (for metering products) and the Ezzahra factory (for Broadband and audio-video products).

Overall, the impact of our sites in 2019 decreased by 4% compared with 2018. This performance can be explained in particular by the deployment in France of the use of electricity of renewable origin, as well as 100% carbon offsetting of our gas consumption (both for production and offices, on all French sites). In addition, upgrading our factories has been extremely beneficial:• Our overall energy intensity in production decreased by 5% in Tunisia in 2019

compared with 2018.• Our gas meter factory in Italy has reduced its energy intensity by 26% in two

years.

Breakdown of Sagemcom's annual carbon impact


Overall, the improvement in our processes has resulted in a 36% reduction in the impact relative to turnover between 2015 and 2019.

Annual carbon impact of the group's consumption, by site (tonnes eq. CO2)

Change in production in Tunisia and corresponding energy intensity

Relationship between production, consumption and intensity in Italy


A concrete case

Our site in Rueil-Malmaison hosts the group’s head office and the Sagemcom Energy & Telecom subsidiary, including its R&D activity. Our site in Rueil-Malmaison accounts for about 25% of the group’s electricity consumption and 75% of its gas consumption. Therefore, it is quite legitimate to promote the environmental approach of this site, which is primarily dedicated to intellectual activities. Three major areas have been developed to control electricity consumption, gas consumption and waste management.

Electricity consumption: electricity from renewable sources

As part of its ISO 14001 management, Sagemcom has opted, not only to take steps to reduce its energy consumption, but also to contribute to the development of renewable energy by signing a contract on 1 July 2017 for the supply of electricity that is certified as coming from renewable sources equivalent to the consumption of our sites in Rueil-Malmaison (head office) and Taden (production of smart meters), or 100% of its consumption in France. This promise is materialised by the production of Guarantees of Origin.

This means that our electricity supplier agrees to inject renewably produced electricity into the grid.A Guarantee of Origin represents one megawatt hour of electricity produced in a given month and contains all the relevant information about the power plant. At the end of each month, the producers receive Guarantees of Origin indicating the net electricity that is actually injected into the grid. This is the issuing process. These certificates can be electronically transferred and used to confirm the renewable nature of the energy consumer by the end users.

Rate of return: impact of consumption/turnover


Our utility injected about 17,154 MWh into the grid on Sagemcom’s behalf from sustainable sources of production in France since the implementation of this measure (6,600 MWh in 2019). This operation reduced emissions by an estimated 2,200 tonnes CO2 equivalent between July 2017 and December 2019.

Gas consumption

In December 2018, a carbon-neutral option was added to our gas supply contract, meaning that every MWh of gas consumed is compensated. Sagemcom has gone even further by promising to inject the equivalent of 30% of our consumption in biomethane produced in waste-to-energy units in France. 3,684 MWh of gas were consumed in France in 2019, representing a quantity of 1,105 m3 of biogas re-injected into the network on our behalf.

Waste management

We work with several service providers to optimise our recycling circuits that go beyond our regulatory obligations. The partnership established with Cedre Recyclage in 2018 was extended into 2019. This company aims to actively participate in the protection of the environment and to help disabled people find work. In 2019, Cèdre collected 13 tonnes of waste:• 18.44% of which was wood from pallets• 60.39% of which was used furniture• 1.46% of which was paper• 16.58% of which was other waste

The enterprise achieved significant environmental gains:

In 2019, Sagemcom chose to engage with new partners to promote waste recycling. On the Rueil-Malmaison campus, plastic cups are collected by Triethic, an eco-responsible company specialising in collection and recycling in Île de France for tertiary activities. The collected cups are then weighed and packaged to be transformed into reusable raw material.Plastic bottles are collected by the Rueil-Malmaison city collection services to then be sent to the sorting centre, for recycling in order to become plastic bottles again.As for the plastic caps, they are also collected on the Rueil-Malmaison site, to be then taken care of by the Bouchons d'Amour association. By reselling the caps to recycling plants, this association finances actions to support the disabled, such as the financing of equipment for disabled sports clubs, guide dogs or many other facilities intended to improve the daily life of disabled people. Our Group is therefore proud to contribute to the organisation of such worthy initiatives, which at the same time preserve the environment.

13 trees 23,319 L of water 428 kg eq CO2 3109 kWh


Ecodesign is a process in its own right, integrated into Sagemcom's project management. Each phase of a project, from launch, to design, qualification and production start-up, is subject to a series of tests that apply to the ecodesign of the product.

ECODESIGN


For more than 10 years, Sagemcom has also been developing the capacity to conduct internal life cycle analyses, in line with the protocols in ISO 14044 and the GHG protocol. Any analyses that

have to be released outside the company are verified by an independent third party in order to guarantee that the results are accurate. These measurements allow us, and our customers, to direct our design options for our future product generations.

In these ways, throughout the product life cycle, Sagemcom undertakes a number of measures:

These ecodesign measures are at the heart of our environmental initiative, because the impact of our products is far greater than the impact of our sites, if we consider their entire life cycle. This difference is illustrated below: while the operation of our sites represents only 0.3% of our impact, the manufacturing of products represents 20%, their use more than 75% and their end of life around 2%.

Using alternative materials

The Sagemcom group considers the use of alternative materials as a permanent source of progress. In the same way that we strive to characterise the environmental

Breakdown of Sagemcom's annual carbon impact


impact of our materials, we make sure to qualify our products on the basis of plastics with high potential for recycling (end-of-life management). The materials we use are assessed according to two criteria: their environmental impact, but also their "technical" practicality. The Group cannot use materials that may have a low environmental impact, but whose technical properties are insufficient to meet our the quality requirements of our customers.

After several years of study, since 2018 we have been integrating recycled plastic into our plastic parts. The low impact of this secondary material, made in Europe from electronic waste produced on the old continent, also enables us to use it in our partner production plants in Asia. The global impact remains below that of the equivalent virgin plastic. Several hundred tonnes will be used in the years to come, as the initiative is gradually deployed.

Thanks to our industrial expertise with this type of plastic, we have been able to produce very large ranges by using alternative materials. As a result, several hundred thousand units have been produced both in our factory in Tunisia and in the factories of our partners around the world.

Packaging

In addition to meeting its obligations, Sagemcom constantly strives to reduce quantities of packaging. Individual packaging is optimised to reduce transportation at equivalent quantities. We also prefer packaging made of recycled or PEFC cardboard, printed with vegetable-based inks.

The replacement of our pallets with a lighter structure, guaranteeing the same performance during transportation, has reduced the environmental impact of every pallet, by spreading its mechanical resistance across different parts. We have thus resulted in a significant reduction in the weight of tertiary packaging (up to 8 kg per pallet) while increasing the number of products transported per pallet.

This dual optimisation, both of the material and of the filling rate, has generated a reduction of approximately 24% in the transport impact in relation to the product transported. This performance was achieved in the case of manufacturing distributed between the sites in Tunisia and Asia using transport by boat and then by truck to France.

Comparison of the impacts between virgin and recycled plastic, depending on the place of manufacture of the finished products (Kg eq. CO2 / kg of plastic)


Batteries

Batteries and accumulators can present a danger to the environment during their disposal due to the hazardous substances they contain. We abide by the European Directive 2006/66/EC, which banned the most polluting batteries (limits on lead, mercury and cadmium).

In addition, batteries are the only possible power source for some of our smart meters, in particular gas, because they are not connected to any external power source. The capacity and robustness of these batteries is therefore a vital factor in ensuring the lifespan of our products. At the same time, we take care not to oversize them to avoid any waste of resource.

Reduced impacts by switching from a twin- to a triple-grooved pallet box (twin-grooved box taken as reference at 100%)

Reduced transport impact linked to the optimisation of palletization (kg eqCO2, for two million products; manufacturing split 50/50 between Tunisia and China)


Transport

Transport is a major source of greenhouse gas emissions. And for urgent deliveries, the transportation of our finished products by air weighs heavily in the carbon balance. If the plane only transports 5% of our goods, it is responsible for 98% of the carbon impact of our logistics! We try to avoid these situations by improving our forecasting processes and the corresponding manufacturing schedules. We put particular emphasis on local deliveries using reusable packaging materials. This avoids wasting pallets and cardboard boxes. We are also working on optimising component packaging in partnership with our suppliers.

Consumption of products

Energy consumption during the use phase is the most significant environmental aspect of our products. Our strategy therefore consists above all in making them more efficient in all their operating modes, and in particular in standby mode.

We pay particular attention to our broadband products. These devices are central to a home network and if we are not careful, they can consume continuously and unnecessarily. We therefore make sure that their operation is as dynamic as possible, by putting unused interfaces on standby for example, to consume as efficiently as possible. Our goal is to respect the European code of conduct for broadband products, which is intended to represent the most efficient products on the market.All of our power supplies comply with the European v5 Third Party Code of Conduct 2.

Facilitating the recycling of our products right from the design phase

The first step affecting the recycling of our products is the choice of the materials used to build them. Combinations of different types of materials can impact the capacity of the product to be recycled. We take care to choose materials that are compatible in the recycling phases. Our products are then assembled in a way that facilitates their deconstruction and the separation of the various components.

2019 transport impact by type and by BU


Calculating product recyclability

We have built on our experience in design and our partnerships with recycling operators to introduce the measurement of the recyclability of our products in order to evaluate the benefits of our end-of-life oriented design methods.

This evaluation takes account of several parameters:• The materials used• The assembly techniques• The known results of the WEEE

processing channels

The evaluation attempts to be realistic, with three possible processing scenarios, ranging from refurbishing to direct destruction.

Dismantling guides for easier recycling

On request, Sagemcom provides recycling operators with dismantling guides in a bid to encourage the recycling of its old products. These guides contain all the information required to optimally recycle and reuse the machines:• a bill of materials (metals, plastics,

electronic circuit boards, etc.)• the location of the components

to be separated (as per the WEEE directive)

• the dismantling steps• the potential risks for recycling

operators (sharp metal edges, etc.)

Life cycle analysis

To identify opportunities for improvement, we analyse our legacy products from both a qualitative (means of assembly, etc.) and a quantitative perspective, by modelling the product lines with a simplified life cycle analysis tool: EIME software, developed by CODDE Bureau Veritas. These analyses guide our strategic development options in order to reduce energy consumption, because it is the phase when the product is in use that has the greatest impact on our products’ life cycles, no matter where they are used.

This expert knowledge also enables us to make preliminary life cycle analyses in an advanced operation conducted during the call for tender phases. The goal is to estimate the environmental impact of a product, in order to help our customers to choose between several possible scenarios, particularly regarding the logistical phase and the choice of materials. It also enables us to decide on the communications mechanisms between products and networks in advance, in order to anticipate cases where one of them would prevent the other one from switching to standby mode.


Major projects are all analysed to assess their impact and the associated gains. Analyses can be customised when requested by customers as of the product design stage. Every product family has a specific approach to the reduction of its environmental impact.Our internal life cycle analyses are conducted in accordance with the ISO 14044 standard and within the following boundaries:

These analyses are described in detail in reports specific to each product model. The reports illustrate the main impacts during the different phases of the product’s life cycle using several indicators.

Short name Indicator Unit

PEP

eco

pas

spor

t –

PC

R 3

.0

- 20

15

AP Potential acidification Kg SO2 eq.

ADPe for EN15804 Abiotic depletion (elements, ultimate reserves) Kg Sb eq.

ADPf for EN15804 Abiotic depletion (fossil fuels) MJ

AP for DHUP Air Pollution m3

EP for EN15804 Eutrophication (fate not included) Kg PO4 eq.

GWP for EN15804 Global Warming (GWP100) kgCO2 eq.

ODP for EN15804 Ozone layer Depletion ODP Steady state kg CFC-11 eq.

POCP for EN15804 Photochemical oxidation (high NOx) kg C2H4 eq.

WP for DHUP Water Pollution m3

PEP

eco

pas

spor

t® -

PC

R 2

.1 - 2

014 AA Air acidification kg H+ eq.

AT Air Toxicity m³

DW Energy Depletion MJ

GW Global Warming Potential kg CO2 eq.

HWP Hazardous Wastes Production kg

OD Ozone Depletion kg CFC-11 eq.

POC Photochemical ozone creation kg C2H4 eq.

RMD Raw Material Depletion Y-1

WD Water Depletion dm3

WE Water Eutrophication kg PO4 eq.

WT Water Toxicity m³

DH

UP

dec

ree

n°2

013

-126

4 c

om-

plia

nt

dec

lara

tion

ADPe for EN15804 Abiotic depletion (elements, ultimate reserves) Kg Sb eq.

ADPf for EN15804 Abiotic depletion (fossil fuels) MJ

AP for DHUP Air Pollution m3

AP for EN15804Acidification (including fate, average Europe total, A&B)

Kg SO2 eq

EP for EN15804 Eutrophication (fate not included) Kg PO4 eq.

GWP for EN15804 Global Warming (GWP100) kgCO2 eq.

ODP for EN15804 Ozone layer Depletion ODP Steady state kg CFC-11 eq.

POCP for EN15804 Photochemical oxidation (high NOx) kg C2H4 eq.

WP for DHUP Water Pollution m3


These studies allow us to demonstrate the progress made on the environmental impacts of products, generation after generation. For example, our DCIW385 set-top box platform shows a 64% drop in impact compared with its predecessor on the market:

All of the impact indicators are down. This shows that our innovations to reduce the carbon impact do not cause any displacement of pollution (“Global Warming Potential” indicator). It is by miniaturising our products and reducing their consumption in standby mode that we have achieved this performance. The result is that our new products go into deep standby, unlike their predecessors which only went into connected standby.

In terms of residential gateways, significant work has been carried out in partnership with our client, Orange to produce the most ecologically designed box on the market. The Livebox 5 benefits from all of Sagemcom's know-how in eco-design, with optimised electronics, reduced consumption, compliant with the European code of conduct (version 7), and recycled plastic shells from European WEEE channels. Its carbon impact has been reduced by 29%. (data reviewed by an independent third party)

Impact comparison between DCIW385 (in green) and RTIW383 (in grey - 100% reference impacts)

Change in impacts (% impact)


Grid and Infrastructure

Sagemcom Energy & Telecom develops solutions to bring and deploy electricity and telecoms networks in African countries.Against this backdrop, WeLight, created in partnership with Axian was designed to offer reliable, accessible and renewable energy to the populations of rural areas of Madagascar and sub-Saharan African countries, thanks to the deployment of innovative technology and the setting-up of payment means accessible to all.

In all, Sagemcom Energy and Telecom has deployed 7.5 MWp of solar production in Africa, and plans to deploy 10 more by the end of 2020.

GIS business helps the development of Africa by reducing the digital divide, by providing network access everywhere with the installation of fibre networks and the construction of telecommunication sites.The activity of these Telecom stations helps to supply energy to off-grid villages, offering new possibilities to residents:• Better health conditions• Food preservation• Increase in local production for agriculture• Business development• Improved safety

6 Malagasy villages supplied

with electricity by the end of 2019

110 Malagasy and West

African villages electrified by the

end of 2020


Andovoranto is where the smart village adventure started for Sagemcom Energy&Telecom. In January 2017, with the support of local partners, GIS teams successfully completed their project to supply electricity to remote villages, demonstrating their complete command of energy production and distribution and subscriber connectionSince then, projects have multiplied and 22 new smart villages have emerged on the island. Nearly 2,000 homes have been connected to the grid. That represents some 10,000 people who can benefit from reliable and efficient electricity service. No more need for candles for lighting or a generator to use the electrical appliances in the house one by one. It is now possible to switch on the fridge, the freezer, the TV and a computer all at the same time. And lighting enables children to do their evening homework in comfort. Schools have been able to acquire computers and other equipment, resulting in a sharp rise in the levels of schooling on the island. In these 22 villages, safety has noticeably increased due to the fact that the streets are now lit at night. The residents of the village feel safer, which allows them to develop their social life.Moreover, this new electricity service has had a very positive impact on the development of the economy. Farmers and traders have been able to equip themselves with new electrical appliances and thus develop their activities, generating an increase in their income. This is evidenced by the residents of the villages newly supplied with electricity (see opposite).With its complete rural electrification solution, Sagemcom has helped to improve the living conditions of the island’s inhabitants. We have kept our promise! The comforts that electricity brings have transformed the daily lives of almost 70,000 people in Madagascar. And it’s not over yet! Sagemcom plans to bring electricity to around fifteen new villages by the end of 2020, with 150 more smart villages to follow in 2021 and 2022.

CLOSE-UP ON: Madagascar, the birthplace of the rural mini-grid


Raymond Randriamanantena

"Since we have had electricity, our family income has increased thanks to growth of our husking business and the expansion of our activities in the shop. The lighting in the house contributes to the well-being of the family on a daily basis. Now, my children can do their homework in the evening with decent lighting. And I think this has had a positive impact on their school results." "

Ludovic Jaofeno

"When electricity arrived, we modernised our equipment and bought two freezers. This has allowed us to quadruple our product sales. Thanks to the increased sales, our family income has risen sharply."

Zotrarivo Ratsimilianjato

"Before we had electricity, I used a generator for my machines and candles for lighting. We don’t have those problems any more, and my business activities have benefited greatly. We are even considering setting up a farm…”


APPENDICES


Contributes to target no. Actions

ODD 1 Eradicate extreme poverty and hunger - - -

ODD 2

Eradicate hunger, ensure food safety,

improve nutrition and promote sustainable

agriculture

overall - deploy energy and telecom networks in the least equipped regions, particularly in Africa, to help improve agricultural productivity through mechanical means and digital tools

ODD 3

Enable everyone to live in good health and promote the well-being

of all at all ages

3.8ensure that everyone has universal health coverage, including protection against financial risks and providing access to essential high-quality health services and to safe, effective, high-quality and affordable essential medication and vaccines

through our occupational health and safety policy, including our actions in the supply chain. In our products, working on the content of chemicals, and on exposure to electromagnetic waves. In Tunisia, with the improvement of the health insurance of our employees

3.9 by 2030, to have significantly reduced the number of deaths and illnesses from hazardous chemicals and pollution and contamination of air, water and soil

by controlling our industrial processes, by ISO14001 and 45001 certification of our production sites, by strict control of chemicals in our workshops and products, by working on the content of chemical substances

ODD 4

Ensure equal access to quality education for all

and promote lifelong learning opportunities

4.3 by 2030, to have ensured that all women and men have equal access to quality technical, vocational or tertiary education, including university-level, and at a reasonable cost

work with the Article 1 association (tutoring), the “Elles bougent” and “Elife” associations, professional equality agreement, training and development policy, etc.

4.4by 2030, to have significantly increased the number of young people and adults with the skills, including technical and vocational skills, necessary for employment, finding a decent job and entrepreneurship


4.5by 2030, to have eliminated gender inequalities in education and ensured equal access for vulnerable people, including the disabled, indigenous people and children in vulnerable situations, at all levels of education and vocational training.


ODD 5Achieve gender equality and empower all women

and girls

5.1 end all forms of discrimination against women and girls worldwide ethical audits of the supply chain, including the fight against discrimination partnership with the “Elles bougent” association, professional equality agreement

5.2 Eliminate from public and private life all forms of violence against women and girls, including trafficking and sexual exploitation and other types of exploitation

ethical audits of the supply chain, including the fight against discrimination, partnership with the “Elles bougent” association, professional equality agreement

5.5 guarantee the full and effective participation of women and their equal access to management positions at all decision-making levels, in political, economic and public life

ethical audits of the supply chain, including the fight against discrimination partnership with the “Elles bougent” association, article 1 professional equality agreement

ODD 6

Guarantee universal access to water

and sanitation and ensure sustainable

management of water resources

6.3by 2030, to have improved water quality by reducing pollution, eliminating dumping of wastes and minimising emissions of chemicals and hazardous materials, halving the proportion of untreated waste water and dramatically increasing the safe recycling and reuse of water globally

control of consumption (buildings) control of aqueous discharges in the factory; elimination of industrial processes using water.

6.4by 2030, to have dramatically increased the rational use of water resources in all sectors and ensured the sustainability of withdrawals and freshwater supply to accommodate water scarcity and significantly reduce the number people who suffer from lack of water

control of consumption and ISO 14001 certification, particularly in countries under water stress (Tunisia). Ongoing in African countries

ODD 7

Guarantee access for all to reliable, sustainable

and modern energy services at an affordable

cost

7.1 by 2030, to have guaranteed access for all to reliable and modern energy services at an affordable cost at the heart of the corporate strategy with smart meters, the deployment of energy and telecom networks, smart grids, smart villages, etc.

7.2 by 2030, to have significantly increased the share of renewable energy in the global energy mix deployment of solar farms, small local autonomous productions (smart villages)

7.b

by 2030, to have developped infrastructure and improved technology in order to provide modern and sustainable energy services to all inhabitants of developing countries, especially the least developed countries, small island developing states and landlocked developing countries, respecting the aid programs that concern them

deployment of solar farms, small local autonomous productions (smart villages)

ODD 8

Promote sustained, inclusive and sustainable

economic growth, full and productive

employment and decent work for all

8.2 achieve a high level of economic productivity through diversification, technological modernisation and innovation, in particular by focusing on high value-added and labour-intensive sectors maintenance of the Sagemcom industrial tool in Tunisia, France, Italy, Germany use of economically viable alternative resources

8.4

gradually improve, until 2030, the efficiency of the use of the world's resources in terms of consumption and production and to ensure that economic growth no longer leads to environmental degradation, as provided for in the ten-year programming framework for sustainable consumption and production, with developed countries setting the example in this area

ecodesign of products efficiency of use of production resources (loss of materials)

8.7take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking, prohibit and eliminate the worst forms of child labour, including the recruitment and use of children soldiers, and by 2025 end child labour in all its forms

work for acceptable working conditions in the supply chain (ethics charter and audits) responsible sourcing - conflict minerals

8.8 defend workers' rights, promote safety in the workplace and ensure the protection of all workers, including migrants, especially women, and those in precarious employment. work towards acceptable working conditions in the supply chain (ethics charter and audits)


Contributes to target no. Actions

ODD 1 Eradicate extreme poverty and hunger - - -

ODD 2

Eradicate hunger, ensure food safety,

improve nutrition and promote sustainable

agriculture

overall - deploy energy and telecom networks in the least equipped regions, particularly in Africa, to help improve agricultural productivity through mechanical means and digital tools

ODD 3

Enable everyone to live in good health and promote the well-being

of all at all ages

3.8ensure that everyone has universal health coverage, including protection against financial risks and providing access to essential high-quality health services and to safe, effective, high-quality and affordable essential medication and vaccines

through our occupational health and safety policy, including our actions in the supply chain. In our products, working on the content of chemicals, and on exposure to electromagnetic waves. In Tunisia, with the improvement of the health insurance of our employees

3.9 by 2030, to have significantly reduced the number of deaths and illnesses from hazardous chemicals and pollution and contamination of air, water and soil

by controlling our industrial processes, by ISO14001 and 45001 certification of our production sites, by strict control of chemicals in our workshops and products, by working on the content of chemical substances

ODD 4

Ensure equal access to quality education for all

and promote lifelong learning opportunities

4.3 by 2030, to have ensured that all women and men have equal access to quality technical, vocational or tertiary education, including university-level, and at a reasonable cost


4.4by 2030, to have significantly increased the number of young people and adults with the skills, including technical and vocational skills, necessary for employment, finding a decent job and entrepreneurship


4.5by 2030, to have eliminated gender inequalities in education and ensured equal access for vulnerable people, including the disabled, indigenous people and children in vulnerable situations, at all levels of education and vocational training.


ODD 5Achieve gender equality and empower all women

and girls

5.1 end all forms of discrimination against women and girls worldwide ethical audits of the supply chain, including the fight against discrimination partnership with the “Elles bougent” association, professional equality agreement

5.2 Eliminate from public and private life all forms of violence against women and girls, including trafficking and sexual exploitation and other types of exploitation

ethical audits of the supply chain, including the fight against discrimination, partnership with the “Elles bougent” association, professional equality agreement

5.5 guarantee the full and effective participation of women and their equal access to management positions at all decision-making levels, in political, economic and public life

ethical audits of the supply chain, including the fight against discrimination partnership with the “Elles bougent” association, article 1 professional equality agreement

ODD 6

Guarantee universal access to water

and sanitation and ensure sustainable

management of water resources

6.3by 2030, to have improved water quality by reducing pollution, eliminating dumping of wastes and minimising emissions of chemicals and hazardous materials, halving the proportion of untreated waste water and dramatically increasing the safe recycling and reuse of water globally

control of consumption (buildings) control of aqueous discharges in the factory; elimination of industrial processes using water.

6.4by 2030, to have dramatically increased the rational use of water resources in all sectors and ensured the sustainability of withdrawals and freshwater supply to accommodate water scarcity and significantly reduce the number people who suffer from lack of water

control of consumption and ISO 14001 certification, particularly in countries under water stress (Tunisia). Ongoing in African countries

ODD 7

Guarantee access for all to reliable, sustainable

and modern energy services at an affordable

cost

7.1 by 2030, to have guaranteed access for all to reliable and modern energy services at an affordable cost at the heart of the corporate strategy with smart meters, the deployment of energy and telecom networks, smart grids, smart villages, etc.

7.2 by 2030, to have significantly increased the share of renewable energy in the global energy mix deployment of solar farms, small local autonomous productions (smart villages)

7.b

by 2030, to have developped infrastructure and improved technology in order to provide modern and sustainable energy services to all inhabitants of developing countries, especially the least developed countries, small island developing states and landlocked developing countries, respecting the aid programs that concern them

deployment of solar farms, small local autonomous productions (smart villages)

ODD 8

Promote sustained, inclusive and sustainable

economic growth, full and productive

employment and decent work for all

8.2 achieve a high level of economic productivity through diversification, technological modernisation and innovation, in particular by focusing on high value-added and labour-intensive sectors maintenance of the Sagemcom industrial tool in Tunisia, France, Italy, Germany use of economically viable alternative resources

8.4

gradually improve, until 2030, the efficiency of the use of the world's resources in terms of consumption and production and to ensure that economic growth no longer leads to environmental degradation, as provided for in the ten-year programming framework for sustainable consumption and production, with developed countries setting the example in this area

ecodesign of products efficiency of use of production resources (loss of materials)

8.7take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking, prohibit and eliminate the worst forms of child labour, including the recruitment and use of children soldiers, and by 2025 end child labour in all its forms

work for acceptable working conditions in the supply chain (ethics charter and audits) responsible sourcing - conflict minerals

8.8 defend workers' rights, promote safety in the workplace and ensure the protection of all workers, including migrants, especially women, and those in precarious employment. work towards acceptable working conditions in the supply chain (ethics charter and audits)


ODD 9

Build resilient infrastructure,

promote sustainable industrialisation that

benefits everyone and encourage innovation

9.1build quality, reliable, sustainable and resilient infrastructure, including regional and cross-border infrastructure, to promote economic development and human well-being, with an emphasis on universal access, at an affordable cost and under fair conditions;

at the heart of the corporate strategy with smart meters, the deployment of energy and telecom networks, smart grids, smart villages… maintenance and improvement of the Sagemcom industrial tool in Tunisia, France, Italy and Germany use of economically viable alternative resources

9.2promote sustainable industrialisation that benefits everyone and, by 2030, to have significantly increased the contribution of industry to employment and the gross domestic product, depending on the national context, and double it in the least developed countries

maintenance and improvement of the Sagemcom industrial tool in Tunisia, France, Italy and Germany with maintenance of the local industrial fabric as much as possible. [regional involvement]

9.4

by 2030, to have modernised infrastructure and adapted industries to make them sustainable, through the more rational use of resources and increased recourse to environmentally-friendly technologies and industrial processes, each country taking whatever action is appropriate to its means

ISO14001 certification, ISO 50001 CSR audits for the supply chain, monitoring of performance indicators certification in progress of GIS activity in Africa

9.csignificantly increase access to information and communication technologies and ensure that all inhabitants of the least developed countries have access to the Internet at an affordable cost by 2020

at the heart of the corporate strategy with smart meters, the deployment of energy and telecom networks, smart grids, smart villages, etc., and the supply of efficient, competitive products to local telecom players

ODD 10

Reduce inequalities within countries and

across countries10.4 adopt policies, including budgetary, salary and social security policies, and achieve greater equality integration practices, equal opportunities, fighting against discriminatory practices Improving health coverage (Tunisia)

ODD 11

Making towns and settlements are

inclusive, safe, resilient and sustainable

11b

by 2020, to have considerably increased the number of towns and settlements which adopt and implement integrated policies and action plans in favour of the inclusion of all, the rational use of resources, adaptation to the effects of climate change and its mitigation and resilience to disasters, and develop and implement, in accordance with the Sendai framework for Disaster Risk Reduction (2015-2030), comprehensive disaster risk management at all levels

ISO14001 and ISO 50001 certification CSR audits for the supply chain, monitoring of business continuity performance indicators, particularly for production sites

ODD 12

Establish sustainable consumption and

production patterns

12.2 by 2030, to have achieved sustainable management and rational use of natural resources consumption: ecodesign (materials, miniaturisation, lower consumption, optimisation of transport, recyclability) production: through ISO14001 and 50001 certification

12.4

by 2020, to have achieved environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with internationally agreed guidelines, and significantly reduce their release into the air, water and soil, to minimise their negative effects on health and the environment

consumption: ecological design (reduction of waste at source, management of hazardous substances in products, reuse of secondary materials) production: through ISO14001 and 50002 certification

12.5 by 2030, to have significantly reduced waste production through prevention, reduction, recycling and reusage

consumption: ecological design (reduction of waste at source, management of hazardous substances in products, reuse of secondary materials) production: through ISO14001 and 50003 certification corp: shareholding in the Ecologic eco-organisation

ODD 13

Take urgent action to combat climate change

and its impacts13.2 incorporate climate change measures into national policies, strategies and planning eco-design of products to reduce the impact of the consumption of our products at the heart of the corporate strategy with smart meters, the deployment

of energy and telecom networks, smart grids, smart villages, etc.

ODD 14

Preserve and sustainably use the oceans, seas

and marine resources for sustainable development

14.1 by 2025, to have prevented and significantly reduced marine pollution of all types, in particular that resulting from land-based activities, including marine litter and nutrient-based pollution transport policy with our logistics subcontractors

ODD 15

Preserve and restore terrestrial ecosystems, ensuring that they are used in a sustainable manner, sustainably

manage forests, fight against desertification,

halt and reverse the process of soil

degradation and put an end to the loss of

biodiversity

15.2 by 2020, to have promoted the sustainable management of all types of forests, end deforestation, restore degraded forests and significantly increased afforestation and reforestation globally purchases of FSC cardboard for product packaging

ODD 16

Promote the emergence of peaceful and inclusive

societies for the purposes of sustainable

development, ensure access to justice for all and establish, at all levels, effective, accountable and

inclusive institutions.

16.4 by 2030, to have significantly reduced illicit financial flows and arms trafficking, stepped up recovery and return activities for stolen property and fought all forms of organised crime work on conflict minerals to avoid indirect financing of armed groups

16.5 significantly reduce corruption and the practice of bribing in all its forms corruption prevention system

ODD 17

Partnerships to achieve goals - - -

Groupe SAGEMCOM250, route de l’Empereur

92848 Rueil-Malmaison Cedex - France

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CSR REPORT 2019 - SAGEMCOM

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Transcript of CSR REPORT 2019 - SAGEMCOM